ZH - Why Shares of Zhihu Are Rising Today
Shares of the Chinese online content community Zhihu (NYSE: ZH) traded nearly 18% higher as of 10:17 a.m. ET today after receiving some positive sentiment from Wall Street this morning.
J.P. Morgan analyst Alex Yao upgraded Zhihu from an underweight rating to neutral, although he lowered his price target on the company from $1.80 per share to $1.50. As of this writing, shares of Zhihu traded around $1.60.
In his research note to investors, Yao said that "significant uncertainties" facing Chinese internet stocks may start to ease after recent regulatory announcements and indicators from the Chinese government. Yao believes "early cycle sectors" including e-commerce, entertainment, and local service will be "the first batch of outperformers." Zhihu is a question-and-answer website and works similarly to Quora.
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Why Shares of Zhihu Are Rising Today